Transcript OPERATIONAL PROGRAMME “DEVELOPMENT OF THE COMPETITIVENESS

OPERATIONAL PROGRAMME
“DEVELOPMENT OF THE
COMPETITIVENESS OF THE
BULGARIAN ECONOMY”
Ministry of Economy and Energy
November 2006
Operational Programme “Development of the
Competitiveness of the Bulgarian economy”

Corresponds to the NSRF strategic priority for acceleration
of economic growth through increasing the competitiveness
of the country’s economy

Horizontal Programme

Financed under ERDF

Managing Authority – “Pre-accession Programmes and
Projects” Directorate, Ministry of Economy and Energy
OP “Development of the Competitiveness of the Bulgarian
Economy”
Content

Socio-economic analysis

SWOT analysis

Priorities and operations

Justification of the priorities, coherence with NSRF and
Community Strategic Guidelines and ex-ante evaluation

Financial plan
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Information for complementarity and demarcation

Management structure of OP
OP “Development of the Competitiveness of the Bulgarian
economy”
Objectives
Global Objective:
 Development of dynamic economy competitive on the EU
and international markets
Specific objectives:
 Encouragement of innovations and increasing the efficiency
of enterprises
 Improvement of business environment
OP “Development of the Competitiveness of the
Bulgarian economy”
Priority objectives
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Improvement of development opportunities for technology start-ups
Dynamisation of the process of development and implementation of
new technologies and procedures by SMEs
Improvement of the access of MSMEs to pro-innovation networks and
services
Modernization of technologies and management in SMEs
Reduction of energy intensity and diversification of energy resources
used
Strengthening the production capacity and market access through
utilization of the advantages of business cooperation
Easing the conditions for credits to MSMEs
Ensuring finances for high risk investments
Ensuring better accessible and qualitative consultancy and information
services for business
Easing non-tariff restrictions facing Bulgarian products
Increasing the volume and the economic effect of investments attracted
Ensuring qualitative and up-to-date information on external markets
OP “Development of the Competitiveness of the
Bulgarian economy”
Structure of interventions

Priority (“Priority Axis”) – thematic area
of interventions

Group of Operations – group of connected activities
within the frames of a priority
 Operations (separate grant scheme or complex
projects)
OP “Development of the Competitiveness of the Bulgarian
economy”
Priority Axis
1.
Development of knowledge-based economy and innovation
activities
2.
Increasing efficiency of enterprises and promoting
supportive business environment
3.
Financial resources for developing enterprises
(Improvement of the access to finances)
4.
Strengthening the international market positions of the
Bulgarian economy
5.
Technical Assistance
Priority Axis 1: “Development of a knowledge-based
economy and innovation activities”
Compliance to EU and national policies:

–
Lisbon Agenda:
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
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–
Community Strategic Guidelines

–
Investing in Research & Development, Boosting Innovation;
“Creating a friendly environment for starting up and developing
innovative businesses, especially SMEs”
“Economic reforms for a complete and fully operational internal
market”.
Priority II “Improving knowledge and innovation for growth” – V
“Increase and improve investment in RTD”, VI “Facilitate
innovation and promote entrepreneurship”
National policies and strategies

National Innovation Strategy

National Strategy for SMEs Promotion 2002 – 2006
National Investment Promotion Strategy

Priority Axis 1 “Development of a knowledge-based economy
and innovation activities”
Development barriers to be addressed:
1. Low ratio (innovation expenditures) / GDP
2. Poorly developed technology transfer infrastructure
3. Lack of market experience for patenting of innovations
4. Lack of instruments for financing innovations
5. Only 3.43% of enterprises are involved in R&D
6. Poor market orientation of R&D
Priority Axis 1 “Development of a knowledge-based economy
and innovation activities”
Group of Operations 1:Providing support for technology
start-ups
•
Beneficiaries: technological start-ups
•
Type of Project: grant scheme
•
Costs: consultations, investments (supply), training
Priority Axis 1 “Development of a knowledge-based economy
and innovation activities”
Group of Operations 2: Increasing the innovative potential of the enterprises
•
Grant scheme for R&D projects – support for industrial research and pre-competitive
development stages for new products and process and introduction of new technologies for
production and management (“pre-competitive stage”)
–
Beneficiaries: SMEs
–
Type of project: grant scheme
–
Costs: consultations, investments
•
Grant scheme for introduction of innovative products, processes and technologies as result of
own researches – delivery of equipment for introduction of the innovations, marketing and
further in commercialization
–
Beneficiaries: SMEs
–
Type of project: grant scheme
–
Costs: consultations, investments
•
Support for protection of the intellectual property at the Single European market
(international registration of patents, trade marks, Community design, etc.) ;
–
Beneficiaries: SMEs
–
Type of project: grant scheme
–
Costs: consultations, elaboration of tender dossiers
Priority Axis 1 “Development of a knowledge-based
economy and innovation activities”
Group of Operations 3: Improvement of the pro-innovative business
infrastructure

Creation and support for innovative business incubators, technology centres, etc. and other
innovative intermediaries, delivering specific complex support to innovative SMEs
– Beneficiaries: Research organizations, technical universities
– Type of project: grant scheme
– Costs: investments (supply, works), trainings

Support for delivering equipment to research organizations
– Beneficiaries: Research organizations, technical universities
– Type of project: grant scheme
– Costs: investments (supply)

Support for development of broad-band connection and innovation data-exchange web-base
–
–
–
Beneficiaries: Research organizations, technical universities
Type of project: global grant
Costs: investments (supply), services
Priority Axis 2 “Increasing efficiency of enterprises and promoting
supportive business environment ”
Compliance with EU and national policies
–
Community Strategic Guidelines


–
Priority I “Making Europe and its regions a more attractive place to invest and work” –
III “Address Europe\s intensive use of traditional energy sources”;
Priority II “Improving knowledge and innovations for growth”, sub-measure “Facilitate
innovations and promote entrepreneurship ”;
Lisbon Strategy

Developing innovative businesses, especially SMEs
–
EU Directive 2001/77 encouraging the energy produced from RES; Directives in
the field of energy efficiency
–
European chapter for small enterprises
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“Education and training for entrepreneurship”; “Availability of skills”, “More out of
the Single market”; “Strengthen the technological capacity of small enterprises”;
Availability of skills
National policies and strategies
•
Energy Strategy, National Program for Energy Saving 2004-2014, Branch Short-term
Program for Energy Efficiency 2005-2007

National Strategy for SMEs Development Promotion 2002 – 2006-Priorities :

Encouragement of the entrepreneur spirit and skills

Improvement of the access to information and services
Priority Axis 2 “Increasing efficiency of enterprises and
promoting supportive business environment”
Development barriers to be addressed:
1.
Low GDP per capita
2.
Outdated technologies and equipment
3.
Labour productivity is only 31.8% of the EU (25) average, and the lowest in
comparison to the new EU members and the other candidate countries
4.
High share of export of products with low Added Value
5.
High energy intensity of the economy and low level of usage of renewable
energy sources
6.
Poor spread of business-oriented services and low quantity and quality of
services offered to them
7.
Low labour expenses per employed compared to EU (25) countries and low
value added, generated by the employed persons
Priority Axis 2 “Increasing efficiency of enterprises and
promoting supportive business environment”
Group of operations 1: Projects for SMEs for technology development and modernization

Grant scheme for technological modernization in enterprises – technological equipment
modernization for extension of enterprises’ activities and increasing the competitiveness.
–
–
–

Grant scheme for introduction of new technologies and products – support for production or
process innovation and technological modernization stemming from the innovation.
–
–
–

Beneficiaries: SMEs
Type of projects: grant scheme
Eligible costs: consultations, investments (supply), training
Beneficiaries: SMEs
Type of projects: grant scheme
Eligible costs: consultations, investments (supply), training
Grant scheme for achieving compliance with internationally recognized standards –
introduction of managements systems (including IT), QMS, etc.
–
–
–
Beneficiaries: SMEs
Type of projects: grant scheme
Eligible costs: consultations, investments (supply), training
Priority Axis 2 “Increasing efficiency of enterprises and
promoting supportive business environment”
Group of operations 2: Creation of Business support networks
 Networking of organizations offering consultancy and information services to
enterprises (business support organizations – BSOs) – accreditation and
networking, preparation of common standards and types of services offered,
investment support for development of their activities, covering the operational
costs for delivering services to SMEs, etc.
–
–
–
–

Institutional beneficiary: BSMEPA
Final beneficiaries: NGOs, delivering consultancy and information services to enterprises
Type of project: global grant
Eligible costs: consultations, trainings, investments (supply)
Support for creation of regional business incubators within the range of BSOs
(support for start-ups and delivering of complex services to enterprises from the
region)
–
–
–
–
Institutional beneficiary: BSMEPA
Final beneficiaries: NGOs, members of the BSOs network
Type of project: global grant
Eligible costs: consultations, trainings, investments (supply)
Priority Axis 2 “Increasing efficiency of enterprises and
promoting supportive business environment”
Group of operations 3: Support for introduction of energy saving
technologies and utilization of RES
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Grant scheme for introduction of energy sving technologies in enterprises
(energy assessment of the needs of the enterprises and energy audit, costs for
pre-feasibility and feasibility studies, costs for delivery, instalment and
introduction of the necessary energy saving technologies and equipment to
achieve higher exploitation of their energy potential, development of energy
saving production lines, improving heat and energy properties of the buildings,
etc.)
– Beneficiaries: SMEs
– Type of project: grant scheme
– Eligible costs: consultations, investments (supply and works), trainings

Grant scheme for introduction of renewable energy sources for the needs
of the enterprises
– Beneficiaries: SMEs
– Type of project: grant scheme
– Eligible costs: consultations, investments (supply and works), trainings
Priority Axis 2 “Increasing efficiency of enterprises and promoting
supportive business environment”
Group of operations 4: Support for business cooperation strengthening the productive capacity through networking and
clustering
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Grant scheme supporting business cooperation and networking
– Beneficiaries: SMEs networks and clusters
– Type of project: grant scheme
– Eligible costs: consultations, investments (supply and works), trainings
Priority Axis 3 “Financial REsources for Developing
Enterprises ”
Compliance with EU and national policies
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–
Community Strategic Guidelines

–
Priority II “Improving knowledge and innovations for growth”, submeasure “Improve access to finance”;
National policies and strategies
•
National Strategy for SMEs Development Promotion 2002 – 2006-
Priorities - Financial environment improvement
Priority Axis 3 “Financial resources for developing enterprises”
Development barriers to be addressed:
1.
•
•
•
•
•
Difficult access of SMEs to development capital - bank financing does
not cover certain groups of SMEs:
Micro enterprises;
Start-ups (before operational break-even);
Innovative enterprises at initial stages of development;
SMEs with lacking business and/or credit track record;
SMEs with no or low collateral, etc.
2. Poorly developed capital market, underdeveloped alternative (to bank
financing) financial instruments for SMEs
3. Insufficient and inadequate financing of innovations
Priority Axis 3 “Financial resources for developing enterprises”
Group of operations 1: Creation of Guarantee Fund or
support for re-organization and expansion of the activities
of already existing guarantee funds
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Grant scheme for capitalization and covering management costs of the
guarantee fund (schemes) for SMEs
Group of operations 2: Support for Venture Capital Funds
focuses on SMEs
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Grant scheme for capitalization and covering management costs of the risk
fund (schemes) for investing in SMEs
Group of operations 3 Support for Micro-Loan Funds
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Grant scheme for capitalization and covering management costs of the
micro-credit funds
Group of operations 4 Creation of Business angels
Network
Priority 4 “Strengthening the international market positions of
Bulgarian economy”
Compliance with EU and national policies

–
Community Strategic Guidelines

–
Lisbon Strategy

–
Economic reforms for a complete and fully operational internal
market
European chapter of small enterprises

–
Priority II “Improving knowledge and innovations for growth”, submeasure “Facilitate innovations and promote entrepreneurship ”;
More out of the Single market
National policies and strategies
•
National Strategy for SMEs Development Promotion 2002 – 2006-
Priorities - Internationalization of SMEs
Priority Axis 4 “Strengthening the international market positions
of Bulgarian economy”
Development barriers to be addressed:
1.
1.
Large current account deficit
High export share of goods with relatively low level of processing (low
value added)
2.
Not very favourable structure of FDI (low share of investments in industry)
3.
Increasing negative rates of export trade balance
4.
Low level products’ certification
5.
Poor interest in accreditation of calibration laboratories
Priority Axis 4 “Strengthening the international market
positions of Bulgarian economy”
Group of operations 1: Support for attracting investors
(project(s) of Bulgarian Investment Agency)
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Project promoting the country as investment destination
– investment marketing, information campaigns, provision of
information to potential investors in targeted manner with
general information on the business environment
–
–
–
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Institutional beneficiary: Invest Bulgaria Agency
Type of project: global grant (service contract)
Eligible costs: consultations, trainings
Creation of an information system supporting the foreign
investors and introduction of a standard “package” of
services for the investors
–
–
–
Institutional beneficiary: Invest Bulgaria Agency
Type of project: global grant (service and supply contract)
Eligible costs: consultations, trainings, investments
Priority Axis 4 “Strengthening the international market
positions of Bulgarian economy”
Group of operations 2: Support for export promotion (project(s) of
BSMEPA
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Increasing the export efficiency - Export development, export planning, market
analysis advisory services to be performed, Preparation of researches and analyses,
development of system and action plan for informing and promoting the country export,
creation and development of export promotion system – unified e-information system
and data bases
–
–
–
–
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Institutional beneficiary: BSMEPA
Final beneficiaries: SMEs
Type of project: global grant (contract(s) for services)
Eligible costs: consultations, trainings, investments
Advertising and promotion of separate groups of products – support for participation
in exhibitions , organization and carrying out of international business forums ,
protection of Bulgarian product names, branding of the Bulgarian products in foreign
countries (when they are not connected with the products of a certain company).
–
–
–
–
Institutional beneficiary: BSMEPA
Final beneficiaries: SMEs
Type of project: global grant (contract(s) for services)
Eligible costs: consultations, trainings, costs for participation in exhibitions
Priority Axis 4 “Strengthening the international market
positions of Bulgarian economy”
Group of operations 3: Support for development of national quality
infrastructure
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Institutional building measures (incl. investments for building a metrological
complex, information campaigns, etc.)
– Beneficiaries: state institutions for national quality infrastructure
– Type of project: global grant (contracts for services, supply and works)
– Eligible costs: consultations, trainings, investments (supply)

Equipment of referent laboratories, necessary for legislation implementation and
the following accreditation.
– Beneficiaries: state owned referent laboratories
– Type of project: contracts for services and supply
– Eligible costs: consultations, trainings, investments (supply)

Improvement of the quality of the access to standardization products. Tracing the
national standards and international recognition of the results from calibration
and testing;
– Beneficiaries: state institutions for national quality infrastructure
– Type of project: contracts for services, supply
– Eligible costs: consultations, trainings, investments (supply)
OP “Development of the Competitiveness of the Bulgarian
Economy”
Institutional framework
OP “Development of the
Competitiveness of the Bulgarian
Economy”
MoEE
Priority 1
Priority 2
Intermediate body BSMEPA
Beneficiaries
Beneficiaries
Monitoring
Committee
Priority 3
Priority 4
Direct implementation
by the MA
Beneficiaries
OP “Development of the Competitiveness of the Bulgarian Economy”
Financial plan
ЕС funds (a)
National
public
funds (b)
Total funds (c) =
(a)+(b)
% national cofinancing
Share of total OP
budget
(%)
1
(d) = (a)/(c)
Priority 1
124 400 000
31 100 000
155 500 000
20%
14%
Priority 2
620 000 000
155 000 000
755 000 000
20%
60%
Priority 3
144 000 000
36 000 000
180 000 000
20%
15%
Priority 4
69 847 200
17 461 800
87 309 000
20%
7%
20%
4%
Priority 5
7 409 128
29 636 511
Total
987 883 711
37 045 639
246 970 928
1 234 854 639
100%
OP “Development of the Competitiveness of the Bulgarian
Economy”
Where are you?

SMEs – main beneficiaries under OP
 Modernization of the technological equipment; creation and introduction
of new products;

Decreasing the energy efficiency of the production and diversification of
the energy sources in use;
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Starting a business, based on innovative products and/or services
developed by the neterprineur;

Joint projects qith research organizations for researches, applicable in
the production;

Professional consultancy and informational business services – in Your
region, by your personal consultant, with high quality and at reasonable
prices;
OP “Development of the Competitiveness of the Bulgarian
Economy”
Where are you?

SMEs – main beneficiaries under OP

Expanding the access to external markets, provision of accurate and
updated information for your products on the international market,
potential partners and subsidies to participate in international exhibitions;

Financial resources for staring and developing business – delivery of
credits, guarantees and risk capital under favourable and accessible
conditions;

Increasing business efficiency and access to new markets through business
cooperation
OP “Development of the Competitiveness of the Bulgarian
Economy”
Where are you?

Non-government organizations
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SMEs partners in projects realization, direct beneficiary under OP

Delivery of professional consultancy and information services to the business –
direct by the means of business support network or by the means of consultations
under the grant scheme.
Elaboration and implementation of joint projects


Bank institutions
•
Ex-ante “economic” assessment of business plans of the companies applying for
grants; ensuring credit assistance to SMEs, bridge financing; implementation of
Priority 3
What else you should know?
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Enterprises should be active in searching and receiving information for SF assistance

Good knowledge on the scope of the programmes and good orientation for the most
suitable instruments for the concrete needs;
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Good knowledge on the rules and procedures and eligibility of expenditures;
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Companies to generate quality project ideas and proposals;
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Application of national and European tender procedures;
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Bulgarian language in filling the applications;
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Obligatory application of the state aid rules
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Obligatory provision of private co-financing
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No advance payments – reimbursement of already made eligible costs
OP “Development of the Competitiveness of the Bulgarian Economy”
Stage of Development

The OP has been redesigned in accordance with the ex-ante findings and EC
requirements - April 2006.

Information and publicity awareness campaign in process:
–
–
–
–
–
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12 public seminars and meetings held between January and May 2006
OP Info Campaign - 12 information and training events organized in July 2006 covering
the 6 NUTS II regions and 6 other district regions
More than 1000 participants for the Info campaign
Training of trainers to be organized at the end of August 2006
Internet webpage to be created for the needs of the MA
Participation in the National information campaign organized by the CCU – September
– October 2006
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Sociological survey on the Bulgarian SMEs’ absorption capacity to participate in
SF is on-going and will be finalized until the end of August 2006

Draft guidelines for applicants under elaboration – to be finalized at the end of the
year
Elaboration of detailed implementation manuals and procedures is ongoing
Monitoring Committee rules adopted and staff of the Committee appointed –
autumn 2006
OP Ex-ante evaluation is finalized – draft final report provided
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
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Contacts
Ministry of Economy and Energy
“Pre-accession Programmes and Projects”
Directorate (Managing Authority)
Tel. + 359 2 940 75 01
Fax: + 359 2 981 17 19
www.iaphare.org
www.mee.government.bg
THANK YOU!